IFA: We won't refund 'compulsory' levy to tillage farmers
Refusal flies in face of President's promise to farmers
The IFA has confirmed that it will not pay back any levies paid by malting barley farmers through a compulsory levy collection system it has in operation with Boortmalt
IFA Deputy President Richard Kennedy told FarmIreland.ie today that the agreement between malting barley producer Boortmalt and IFA, which was agreed when Boortmalt set up operations in Ireland, includes a compulsory levy on tillage farmers.
The 39c/t levy is part of all contracts Boortmalt has with tillage farmers and means that farmers must agree to allow Boortmalt collect the levy for IFA.
Boortmalt confirmed that it bought over 125,000t of malting barley from Irish farmers last year, which would account for approximately €48,750 in levies collected for IFA. The levy is applied to all Boortmalt suppliers, whether they are IFA members or not.
IFA previously said that any farmer looking to recoup levies could do so.
Now, however, Kennedy has said that tillage farmers supplying Boortmalt cannot claim back these levies.
"Farmers can not claim back the levy. A contract was agreed between Boortmalt and IFA when Boortmalt was set up in Ireland and part of that is a compulsory levy. The money can not be got back now."
He said IFA was 'entitled' to collect the levy and keep it because of the work it has done to improve the tillage sector in Ireland. "IFA has grown the industry and farmers have benefited from the work IFA has done.